Rewards and curiosity
Loss aversion
A loss tends to feel bigger than a gain of the same size.
ContestedReplications or meta-analyses disagree. Do not assume the effect.
Example
"Don’t lose $10" grabs more attention than "Gain $10."
Why it works
Prospect theory says people judge outcomes as gains or losses from a reference point and weigh losses more. A meta-analysis of 607 estimates put losses at about twice the weight of equal gains. Others argue loss aversion does not appear in every setting.
On the web
Use guarantees and refunds to shrink what people risk by trying. If unsaved work will be lost, say so accurately when people leave.
When it backfires
"Quit now and lose everything" messages and cancellation flows that keep hammering losses count as dark patterns. Show losses only when they are true and help people decide.
Sources
Introduces prospect theory, in which gains and losses from a reference point are valued asymmetrically.
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263-291. Open source
Estimates a mean loss-aversion coefficient of about 1.96 from 607 estimates in 150 papers.
Brown, A. L., Imai, T., Vieider, F. M., & Camerer, C. F. (2024). Meta-analysis of empirical estimates of loss aversion. Journal of Economic Literature, 62(2), 485-516. Open source
Argues that losses often do not loom larger than equivalent gains.
Gal, D., & Rucker, D. D. (2018). The loss of loss aversion: Will it loom larger than its gain? Journal of Consumer Psychology, 28(3), 497-516. Open source
Connect with the classics
These links are editorial readings, not research findings. Check the original meaning on each classics page.
甚愛必大費，多藏必厚亡。Great attachment brings great cost; much hoarding brings heavy loss. It mirrors loss aversion and cautions against designs that stoke fear of loss.
Laozi · Dao De Jing Enough and where to stop →